A thousand questions....
Oct 24th 2008, 9:02 pm
#1
Happy here..
Thread Starter
Joined: Oct 2006
Location: Halifax,NS
Posts: 219
A thousand questions....
Hi
Just found this part of the forum and was really pleased:
I will be moving to Canada from France in December.We will be transferring
all the proceeds from the sale of our house over then.I really dont know how this works,is there any reading info as to how it works,what to do,
how I do it,not even sure where to start,who do I call,are there really no fees ? any paperwork? I have a thousand questions.....
The amount is substantial and I dont want to make any mistakes.I have been watching the exchange rates daily on hifx and they are great at the moment.
Thanks
Just found this part of the forum and was really pleased:
I will be moving to Canada from France in December.We will be transferring
all the proceeds from the sale of our house over then.I really dont know how this works,is there any reading info as to how it works,what to do,
how I do it,not even sure where to start,who do I call,are there really no fees ? any paperwork? I have a thousand questions.....
The amount is substantial and I dont want to make any mistakes.I have been watching the exchange rates daily on hifx and they are great at the moment.
Thanks
Oct 27th 2008, 5:55 am
#2
BE Enthusiast
Joined: Dec 2004
Posts: 524
Re: A thousand questions....
Hi Eve,
Don't worry - hopefully the following will begin to answer your questions!
First things first. We appreciate that sending large amounts of money overseas can be daunting and we want you to be happy with every aspect of the process.
Being impartial here, the first thing I suggest you do is register with one or more companies like HiFX. You might also want to give your own bank a call to find out how your bank would help you.
Registering with HiFX for example, is simple and should take no more than a minute or two of your time. It's is free, and carries no obligation to trade, but it does allow you to call us for guidance and access to the latest market reports free of charge. Once registered you can talk through the various options open to you depending upon your individual circumstances (i've covered these briefly below). You'll also be kept up to date on what's happening with the exchange rates.
Whilst it might seem boring, feedback from customers shows that the sooner you start thinking about exchange rates the more likely you are to get an exchange rate you're happy with.
With regards your currency options:
Your currency options depend on whether you have access to some or all of the funds you wish to transfer:
If you have access to all the funds you have two choices: one risk free and one high risk.
The risk free solution would be to buy all of the currency now, thus fixing the cost at the outset. This is called buying currency for spot. You can then deposit the bought currency to earn some interest and send payment when needed.
If you do not have access to all of the funds at the outset you can still play it safe. The solution is to buy one or more forward contracts.
In essence, a forward contract means that you can buy the currency now, and pay for it later (when you need to make the further stage payments for example). You will be required to pay a 15% deposit now and the 90% balance upon the maturity of the contract. For example, if you wish to buy Euro50,000 worth of Canadian Dollars but do not need to send them for 3 months, you can agree the exchange rate now, place a Euro5,000 deposit, and pay the remaining Euro45,000 balance in 3 months. If the exchange rate moves at all in that 3 month period, you will not be affected, as you have bought currency at the originally agreed rate.
If you have strong views about future exchange rates and are looking to achieve a specific rate, we can arrange a market order.
This allows you to target a better rate of exchange. We monitor the markets on your behalf and, should the market reach your predetermined exchange rate, your currency is bought or sold automatically. Your order is live 24 hours a day and can be amended or cancelled at any time prior to the transaction taking place.
At the end of the day you should use a company you not only trust, but also feel happy with. When choosing a currency specialist, my check list would be as follows:
- do they hold your money in segregated client trust accounts. Essentially this means that your funds are held separately from company funds protecting it from creditors etc.
- do they have professional indemnity insurance protecting customers from staff fraud etc.
- do they have direct access to SWIFT. SWIFT is the worlds largest payments and settlements network for domestic and international trades. Direct access ensures you the client benefit from faster payments and enhanced security.
Hopefully this helps - but please don't hesitate to drop me a personal message if I can be of any further assistance. As I said you're not alone in find the thought of transferring large sums of money daunting!
Best Regards
Mark Bodega
Director - HiFX
Don't worry - hopefully the following will begin to answer your questions!
First things first. We appreciate that sending large amounts of money overseas can be daunting and we want you to be happy with every aspect of the process.
Being impartial here, the first thing I suggest you do is register with one or more companies like HiFX. You might also want to give your own bank a call to find out how your bank would help you.
Registering with HiFX for example, is simple and should take no more than a minute or two of your time. It's is free, and carries no obligation to trade, but it does allow you to call us for guidance and access to the latest market reports free of charge. Once registered you can talk through the various options open to you depending upon your individual circumstances (i've covered these briefly below). You'll also be kept up to date on what's happening with the exchange rates.
Whilst it might seem boring, feedback from customers shows that the sooner you start thinking about exchange rates the more likely you are to get an exchange rate you're happy with.
With regards your currency options:
Your currency options depend on whether you have access to some or all of the funds you wish to transfer:
If you have access to all the funds you have two choices: one risk free and one high risk.
The risk free solution would be to buy all of the currency now, thus fixing the cost at the outset. This is called buying currency for spot. You can then deposit the bought currency to earn some interest and send payment when needed.
If you do not have access to all of the funds at the outset you can still play it safe. The solution is to buy one or more forward contracts.
In essence, a forward contract means that you can buy the currency now, and pay for it later (when you need to make the further stage payments for example). You will be required to pay a 15% deposit now and the 90% balance upon the maturity of the contract. For example, if you wish to buy Euro50,000 worth of Canadian Dollars but do not need to send them for 3 months, you can agree the exchange rate now, place a Euro5,000 deposit, and pay the remaining Euro45,000 balance in 3 months. If the exchange rate moves at all in that 3 month period, you will not be affected, as you have bought currency at the originally agreed rate.
If you have strong views about future exchange rates and are looking to achieve a specific rate, we can arrange a market order.
This allows you to target a better rate of exchange. We monitor the markets on your behalf and, should the market reach your predetermined exchange rate, your currency is bought or sold automatically. Your order is live 24 hours a day and can be amended or cancelled at any time prior to the transaction taking place.
At the end of the day you should use a company you not only trust, but also feel happy with. When choosing a currency specialist, my check list would be as follows:
- do they hold your money in segregated client trust accounts. Essentially this means that your funds are held separately from company funds protecting it from creditors etc.
- do they have professional indemnity insurance protecting customers from staff fraud etc.
- do they have direct access to SWIFT. SWIFT is the worlds largest payments and settlements network for domestic and international trades. Direct access ensures you the client benefit from faster payments and enhanced security.
Hopefully this helps - but please don't hesitate to drop me a personal message if I can be of any further assistance. As I said you're not alone in find the thought of transferring large sums of money daunting!
Best Regards
Mark Bodega
Director - HiFX
Nov 2nd 2008, 3:09 am
#3
Happy here..
Thread Starter
Joined: Oct 2006
Location: Halifax,NS
Posts: 219
Re: A thousand questions....
Thanks Mark,interesting reading and very useful I had no idea there were so many options.
It has reassured me as I realise what our needs are now and in fact I think it will probably be quite straight forward.
We dont have the funds as yet and when we do they will be needed for setting up in Canada as we are immigrating.
I have been watching the exchange rates daily and know what rate I would like.I think one of your options of setting a rate and then having the money transferred is what would suit us as long as it doesnt take months!
Thanks for your help, I will register with HIFX and another company and see what their advice is.
Thanks!!
Eve
It has reassured me as I realise what our needs are now and in fact I think it will probably be quite straight forward.
We dont have the funds as yet and when we do they will be needed for setting up in Canada as we are immigrating.
I have been watching the exchange rates daily and know what rate I would like.I think one of your options of setting a rate and then having the money transferred is what would suit us as long as it doesnt take months!
Thanks for your help, I will register with HIFX and another company and see what their advice is.
Thanks!!
Eve
